UK house prices fell 0.6% in May to £278,024, the biggest monthly drop since June last year and the first decline in five months, Nationwide said. Healthy household balance sheets had buffered prices early in the Iran conflict, but momentum is weakening as borrowing costs spike. Wage growth is trailing inflation and higher mortgage rates are tightening affordability. Moneyfacts shows the average two-year fixed mortgage rate at 5.68%, about 0.9 percentage points above its level before the late‑Fe

UK house prices fell 0.6% in May to £278,024, the biggest monthly drop since June last year and the first decline in five months, Nationwide said. Healthy household balance sheets had buffered prices early in the Iran conflict, but momentum is weakening as borrowing costs spike. Wage growth is trailing inflation and higher mortgage rates are tightening affordability. Moneyfacts shows the average two-year fixed mortgage rate at 5.68%, about 0.9 percentage points above its level before the late‑February US and Israeli strikes on Iran. The Bank of England has signalled possible further hikes if inflation persists; money markets price roughly 50bps of tightening by year-end, with traders expecting additional tightening thereafter.